This article addresses whether a new instrument of public intervention is needed within the framework of the EU’s new industrial policy to achieve common EU objectives and, if so, what characteristics such an instrument should have with regard to its impact on the Single Market. To identify current trends in public intervention in EU Member States, the study uses indicators that measure the intensity of industrial state aid and the similarity of its structure. The analysis draws on European Commission data for 2004–2023. Despite common legal regulations, the results show substantial cross-country diversity in both the intensity and structure of industrial state aid, which may hinder the achievement of EU objectives. One potential solution to mitigate negative trends in EU market intervention could be IPCEI, a tool that may help protect the integrity of the Single Market. However, existing experience suggest that only large Member States with ample financial resources are willing to engage in IPCEI, which in the long run could lead to distortions in competition and cohesion within the European Union.